McEwen Mining reduces net debt in Q2 on strong production and higher gold price
(Kitco News) - McEwen Mining (NYSE: MUX) (TSX: MUX) announced yesterday that its gold equivalent production of 40,700 ounces in Q2 2021 was significantly higher than a year ago (19,200 ounces in Q2 2020) and that the company is on track to meet its 2021 production guidance of 141,000 to 160,400 ounces.
The company’s revenue from gold and silver sales in Q2 2021 of $40.7 million increased by 123% or $22.4 million compared to Q2 2020. The increase reflects 11,700 more gold equivalent ounces sold from McEwen's 100% owned operations. The increase in revenues was also positively impacted by a higher average realized gold price in the quarter compared to Q2/20 ($1,830/oz in Q2/21; $1,733/oz in Q2/20).
In Q2 2021, the company reported a net loss of $6.0 million (or $0.01 per share) compared to a loss of $19.8 million (or $0.05 per share) in the quarter ended June 30, 2020. McEwen explained that improvement in Q2 2021 is primarily driven by a $13.5 million increase in gross profit due to increased production and sales and a higher average realized gold price.
The company said it continues to execute on its turnaround strategy and has made significant progress both from an operational and a financial perspective. McEwen expects this trend to continue to the remainder of 2021, as the Froome mine at the Fox Complex reaches commercial production in Q4.
McEwen Mining is a diversified gold and silver producer and explorer focused on the Americas with operating mines in Nevada, Canada, Mexico and Argentina.